The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1887-05-20
HOW TO GET THERE.
Gould Gives the Commission
a Little Advice.
HIS OPINION OF INTERSTATE
The Future of the Union Pacific
Government Should Settle on
Fair Basis.
Gould Still Grinding

Gould Still Grinding.
New YORK, May 19.-When the Pa
cihc Railway Commission got to work
this morning, Jay Gould resumed the
witness stand, and the inquisition was
continued by Commissioner Anderson.
Gould testified that the provisions OF
the consolidated mortgage trust were
strictly complied with by the trustees,
and the bonds issued as therein pro-
Vid' q. Gould was shown a transcript
or the transactions in consolidated
bonds, furnished by the Union Pacific
Company, which would seem to ind.
cate that the trustees had not followed
the trust. Gould said that was the
Union Pacific's account, of which be
knew nothing; that the true way to get
st the matter was to examine the &C
counts OF the trus :ees; kept by Mr..
Calef, who could be got 10 make the
necessary explanation. The trustees
only charged the amounts named in
the mortgage. The accou is YOU show
are OF negotiations with the Union Pa
clhc, and they could get their own
prices. You will find that the accounts
of the trustees
WILL BALANCE THE MORTGAGES.
Anderson said that he could not en-
quire intelligently With reference TO the
commission of these trust securities
with the accounts kept by Calef. Gould
gave SergeaEt-at-armS Walsh, note
erecting Calef to appear before the
commission with books showing the
issue of bonds. After quoting a great
many figures, showing the times and
details of the consolidation, Gould said ::
II claim, if [ were a creditor of the
road like Government, that l would not
have heSitated in granting an extension
OF time, in paying the subsidy-even
though the road were paying dividends,
unless government wanted to take the
road, and run it. If it did, there was
chance for 1t"
Amos h. Calef was recalled and pro-
duced the journal of the trustees of the
Kansas Pacific Consolidated mortgage.
which showed a few transactions on
exchange when the pool and not the
mortgage rates controlled. Anderson
was asked could he explain why the
trustees books show that So ,3S6, 269 of
the securities were exchanged at pool
rates, when he stated yesterday that
they were exchanged at mortgage
communication rates. The witness could
not, because he understood that the
members of the pool were not pre-
ferred. The transactions in which he
was interested were made with the
Union Pacific, they securing the bonds
and paying to Gould through the me-
dunn of Treasurer Ham.
NJ hara
his subject of investigation 10 ask for
his own information, Gould's opinion
with reference to the
INTER STATE COMMERCE BILL.
Gould said: There Is great deal OF
good and some bad in it. 1 have not
asked the commission for any change
yet. l should prefer to wait a year or
TWO before giving any definite opinion"
In reply to Judge Dillon's question,
Gould said that the acquisition of the
Denver & South Park road was a po-
lite action on the part of the Union
Pacific, and brought him no great per
sonal profit. Kansas Pacific stock was
jumped upon as rapidly as it
leaked out l was buying largely.
[ did it to protect my interest
in the Union Pacific and furnish
the southern an outlet, and
NOT TO OFFSET THE MARKET.
AS soon as the Iowa roads pro-rated,
We turned the traffic over the southern
road and made money for the I'm
Pacific. 1 made money by the trans
action, of course. l want to explain to
the Commission my motives in making
these large purchases. l have nothing
to conceal. AT present have no inter-
est in the Union Pacific. While 1 was
with it, the company built
several branch lines to act as feeders. No
Individual made any profit out of the
building of these roads, the company
building them at actual cost. AS
the Central Branch, the Kan
'as Central, and the St. Joseph 81 West
,rn roads, am willing to take them
off the Union Pacific's hands at the
price it paid for them. AT the time of
,he consolidation the Kansas Pacific
was more valuable property than the
Union Pacific. 1t was not put into con-
jolidation at too high value. The
securities of the government were in
creased by the consolidation, and l can
not conceive how the consolidation was
d any way
INJURIOUS TO GOVERNMENTS INTERESTS.
One management was needed. and the
and the consequent Grip
ping of the Union Pacific was pre-
Vented" In reply to Ex-Governor
/ atterson's question, as to why be re
tired from the management of the
Union Pacific, Gould answered: Il
made up my mind it would be-better to
have a large number interested in the
road than to have the people say, Jay
Gould owns it. l was also partially
Dy the undesirability of hav-
ng government for partner. When
he road was in the rut, it could have
made any sort of bargain with the !
when it had been con- |
,erted into paying property-thus in
.reasiug government'ss acknowledgements
nent stepped in and attacked 1t. 1t is
lifficult to predict
THE FUTURE OF THE UNION PACIFIC,
,ut 1 think the government will have
% make large concessions of both prin-
,ipal and interest to the road, when the
ponds become due, because the road